Profit taking keeps FBM KLCI in negative zone

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KUALA LUMPUR (Dec 18): The FBM KLCI stayed in the negative zone at mid-morning today on some mild profit taking in line with the slip at regional markets following the overnight decline at Wall Street.

At 10am, the FBM KLCI fell 6.17 points to 1,650.35.

The losers included British American Tobacco (M) Bhd, DanaInfra Nasional Bhd, Ajinomoto (M) Bhd, Dutch Lady Milk Industries Bhd, Kuala Lumpur Kepong Bhd, Can-One Bhd, AMMB Holdings Bhd, Ibraco Bhd and DKSH (M) Holdings Bhd.

The actives included Red Sena Bhd, Instacom Group Bhd, Asia Media Bhd, Sumatec Resources Bhd, Comfort Gloves Bhd and XOX Bhd.

The top gainers included Top Glove Corporation Bhd, Scientex Bhd, Nestle (M) Bhd, Malaysian Pacific Industries Bhd, P.I.E. Industrial Bhd and Supermax Corporation Bhd.

Asian shares took their cue from Wall Street and slipped on Friday, but were still on track for gains in a week marked by a depreciating yuan in China and the first US interest rate hike in nearly a decade, according to Reuters.

In contrast, Taiwan's central bank cut interest rates for the second time this year and said it would keep monetary policy loose to shore up growth in the island's trade-dependent economy as the global demand outlook worsened, it said.

Hong Leong IB Research in a market preview today said the FBM KLCI may witness some profit taking, mirroring the overnight Wall St fall and sliding oil prices.

"However, we see buying opportunities near 1,622–1,644 zones as any downside risk will be well-cushioned by the seasonal pre-Santa Claus and year-end window dressing rally (please refer our Tradersbrief dated Dec 17), ValueCap factor, potential further monetary easing from PBOC (People's Bank of China), recovery in ringgit and ongoing positive progresses of 1MDB scandal," it said.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)